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Residual value prediction using deep learning
RISE Research Institutes of Sweden, Digital Systems, Data Science.ORCID iD: 0000-0001-7856-113X
RISE Research Institutes of Sweden, Digital Systems, Data Science.ORCID iD: 0000-0002-9567-2218
RISE Research Institutes of Sweden, Built Environment, System Transition and Service Innovation.ORCID iD: 0000-0002-3462-5987
RISE Research Institutes of Sweden, Digital Systems, Prototyping Society.ORCID iD: 0000-0003-4820-5104
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2022 (English)In: Proceedings - 2022 IEEE International Conference on Big Data, Big Data 2022, Institute of Electrical and Electronics Engineers Inc. , 2022, p. 4560-4567Conference paper, Published paper (Refereed)
Abstract [en]

Great environmental problems are facing us at an unprecedented level.One way of approaching these global challenges is by transitioning from a linear economy to a circular one. In a circular economy, product and material flows become circular, which can significantly improve resource efficiency for environmental sustainability. This can help with minimizing waste and pollution and aid in the regeneration of nature.Meanwhile, transitioning from linear business models to circular business models (CBMs) often leads to a number of financial risks for product companies, since they need to secure more capital in a stock of products that will be rented out over time. This leads to a slower, more volatile cash flow in the short term compared to linear direct sales of products.In this work, we address this problem by reducing the uncertainty of the future value of products. This can increase the willingness among financiers to be part of the development of new circular business models (CBMs). In particular, we study the predictability of online auction end prices using machine learning. The models are trained and evaluated on data collected from a Swedish online auction site.Our results show that deep learning is able to model the residual value of second-hand items on the market using user-uploaded text and images. Our hypothesis is that this technique will be useful to estimate the value of second-hand inventories and to help estimate the value of circular businesses, aiding in a transition from a linear to a circular economy. 

Place, publisher, year, edition, pages
Institute of Electrical and Electronics Engineers Inc. , 2022. p. 4560-4567
Keywords [en]
circular economy, deep learning, representation learning, sustainability, Electronic commerce, Business models, Environmental problems, Global challenges, Material Flow, Product flow, Residual value, Value prediction, Sustainable development
National Category
Environmental Sciences
Identifiers
URN: urn:nbn:se:ri:diva-64108DOI: 10.1109/BigData55660.2022.10021044Scopus ID: 2-s2.0-85147923112ISBN: 9781665480451 (print)OAI: oai:DiVA.org:ri-64108DiVA, id: diva2:1740072
Conference
2022 IEEE International Conference on Big Data, Big Data 2022, 17 December 2022 through 20 December 2022
Note

 Correspondence Address: Zec EL, RISE Research Institutes of Sweden, Sweden; email: edvin.listo.zec@ri.se

Available from: 2023-02-28 Created: 2023-02-28 Last updated: 2024-05-21Bibliographically approved

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Zec, Edvin ListoMogren, OlofMellquist, Ann-CharlotteFallahi, Sara

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